Silver has fallen again! Last night's night session began a sharp decline, as of this afternoon, precious metals are weak shocks, and the main force of Shanghai gold fell by 0.83%. The main force of Shanghai silver fell 2.05%, which is a strong decline. So, how should we view silver's sharp decline today?
Hello everyone, I am Kankan, a hard-working and serious analyst. Today to talk to you about silver, the market is green, silver after the market is taken off against the wind or sink?
First of all, the conclusion: silver can still go long at a low price. Next, let's analyze the reasons for this wave of plunge, and the basis for supporting the idea of low and multi-bullish.
Why gold and silver suddenly weakened should already know, in short, the latest data released by the United States is stronger than expected. The dollar index rose 0.2 percent on Tuesday, briefly breaking through the 94 mark to a high of 94.03 during the session. At the same time, U.S. stocks were boosted by beautiful corporate earnings reports, and risk appetite strengthened. Silver, on the other hand, is affected by its industrial properties, so the decline is relatively large.
The rise in the dollar index has made gold less attractive to investors who hold other currencies. The strong U.S. consumer confidence index boosted the dollar, and the consumer confidence index also exceeded economists' expectations. At the same time, new home sales in the United States hit a six-month high in September, a significant recovery, and the dollar index stabilized. As a result, gold and silver fell to varying degrees.
In addition, the Fed will hold a monetary policy meeting on November 2-3, and the market is widely expected to announce the Fed's announcement of bond purchase cuts. Investors will look for any signs of a reduction in the pace of bond purchases to gauge how quickly the Fed might move to normalize interest rates. #贵金属投资 #
Let's take a look at other recent conferences and data affecting precious metals:
Next Thursday, the U.S. will release its gross domestic product (GDP), and if the data slows as expected, it could ease some of the pressure on the Fed with relatively high inflation.
In addition, the United States will release the Personal Consumption Expenditure (PCE) price index multiple on Friday, which is the Fed's favorite indicator of inflation.
Therefore, for the current situation, because the current inflationary pressure is still high, and in the case of higher crude oil prices, inflation expectations may be difficult to weaken, and in this case, there may still be funds that will be relatively favored by precious metal varieties that are familiar with anti-inflation. If the rally of the US dollar cannot be extended, then precious metals are still a good idea to go long at low prices.
From a technical point of view, today's precious metals are oscillating downward, and the bulls are reducing their positions. The market's attention to the minutes of the Federal Reserve meeting and the unchanged expectation of monetary tightening have put pressure on gold prices. In addition, silver prices are weaker under the drag of the green of the base metal across the board. Technically, the bullion daily KDJ indicator crosses downwards, but the hourly MACD green bar shortens. In operation, the overall high throw and low suction are the mainstays, and when the time is ripe, you can directly enter and wait patiently.
Summary: Gold and silver can perform high selling and low suction, and follow the idea of doing long at a low place. #白银 #
What do you think of this wave of precious metals falling market? Do you think precious metals have sunk or taken off against the wind? Creation is not easy, continuous sharing is more difficult, welcome to like and support the message to discuss Oh. We will continue to meet here tomorrow.